Achim Berg: ‘Our Goal Is To Keep Growing’
In April 2013, Achim Berg became Chairman & CEO of Arvato and took a seat on the Bertelsmann Executive Board. In an interview with Bertelsmann editors, Berg looks back on his first year in these roles and gives an outlook on the course he has set for increased growth.
One year of Achim Berg at Arvato – how does it feel?
Achim Berg: To be honest, it feels odd: on the one hand, the year has flown by while on the other, it seems as if I have actually been here for ten years. So much has happened in that one year: I have met so many great people, I have come to understand Arvato, and together, we have achieved a lot.
Was there one particular highlight for you during that year?
Achim Berg: There were many highlights. In the spring, I returned to Germany from Microsoft in the United States and then immediately started at Arvato. First of all, I committed myself to 100 days of “listening.” I talked to many colleagues in many countries – and visited almost every country where we do business. We had intensive workshops with the Top 20 and the business reviews, where we examined the performance of the individual business areas. We restructured parts of the Executive Board, established the extended Arvato Board, and gave the whole of Arvato a new structure. Those were major and important milestones during the past year. These milestones were accompanied by super events like the anniversary of Arvato Iberia, the Bertelsmann Management Meeting and, not least, the “It starts with us” meeting where we presented our new structure to the top 100 Arvato executives.
In one of your first interviews you said that it is your goal for Arvato to grow. You recently presented the 2013 annual statement in Berlin. At around 4.4 billion, turnover seems to be more or less the same as in 2012...
Achim Berg: Our goal remains growth, and that will happen in 2014. The past year was marked by dismantling and development. We closed or sold sites in America, China and Brazil, for example. On the other hand, through the acquisition of Gothia and Netrada, we carried out two of the biggest transactions in the history of Arvato. This catapulted us to number three in the European financial services market, and we are number one in Germany in the fashion eCommerce sector. Anyway, we recorded organic growth of 1.7 percent – in this context, a stable sales volume is good news. Apart from growth, it is also worth noting that our operating profit has developed positively again for the first time in many years. All in all, we performed well in 2013.
Now that you mention it: in the past year, you reviewed Arvato’s organizational structure, and the new strategy is scheduled to be communicated at the end of May. Were these big changes really necessary?
Achim Berg: First of all, I would like to say that I did not sit down alone in my office and simply sketch out a new organizational structure on a blank piece of paper. Our new structure is the result of the workshops with the Top 20, the business reviews, the site inspections and numerous meetings with employees. And yes, it was necessary: Granted, Arvato has a good business model, but generating growth in an organization that encompasses 23 decentralized market units is rather difficult to achieve. That is why the reorganization was necessary. And as far as the strategy we will introduce at the end of May in Berlin is concerned: this is not a new strategy drawn up from scratch, but rather an adapted version of the existing strategy to bring it in line with the new structure. It also allows us to better use the possibilities the new organization offers for innovation and internationalization.
A new organizational structure, adaptation of the strategy, becoming more innovative and international. Let’s be frank, Mr. Berg – aren’t you demanding quite a lot all at once from the employees and management at Arvato?
Achim Berg: Thanks to the solution groups, the country managers and key account management, we are now positioned much more clearly and solidly. Many people might think that I sit here in my ivory tower and don’t know what’s really going on – that’s not true. I know that some points are under great strain and a lot of things still need to be shaken up, and that middle management currently has a particularly heavy burden to bear. I’d like to take this opportunity to thank all our employees for their contribution to these great changes, even if the daily work is not always easy at this point. However, we are on the right path! I say it at all events and I am not afraid to repeat it again here: Please feel free to address your feedback directly to me.
We’ve talked a lot about 2013, your first year at Arvato.How is your second year looking?
Achim Berg: Things are continuing to move forward. The next big milestone is in sight: At the end of May, I will meet with 500 employees from all countries in Berlin. At our last big meeting in September, we laid the foundation for the new structure. “It starts with us” was the motto. In May, the Extended Board will present the adapted strategy, which is all about designing Arvato’s future – “Shaping. Tomorrow. Now.” will be the motto of the event. You will then realize that many activities, such as the acquisitions of Netrada and Gothia, are already paying into the adapted strategy – we are not starting from scratch. I’m quite excited and looking forward to it immensely. My primary goal is for us to work together to turn Arvato into an important growth engine for Bertelsmann.
